Oil rebounds on hopes for global output cut

Oil prices rose on Tuesday, to resume gains after hitting a pause yesterday, but today hopes emerged that the major producers, especially Saudi Arabia and Russia, will reach a deeper output cut agreement to stop the falling prices, and President Donald Trump's remarks about slowing the US production.

The US crude rose 3.3% to $27.16 a barrel, after opening at $26.29, and hit a session-low of $26.29, and Brent rose 2.5% to $34.15, after it opened at $33.30, with a low of $33.24.

The US crude lost 8.7% yesterday, to snap its 4-day winning streak, on profit-taking from a 2-week high of $29.11, and Brent fell 4.6%, on profit-taking from a 3-week high of $36.16.

Oil prices were weighed down yesterday by renewed worries over the rising tensions between Saudi Arabia and Russia, especially after the OPEC-Plus emergency meeting was delayed

While Reuters quoted sources that the major oil producers, especially Saudi Arabia and Russia, are likely reach a cut agreement in the next meeting which will be held via a closed conference call next Thursday, but the agreement will depend on the US participation.

The CEO of the Russian National Wealth Fund's told CNBC today that Saudi Arabia and Russia are very close to a production cut agreement.

The global coalition of OPEC and non-OPEC producers, led by Russia, was implementing an output cut agreement recently, but was faced by a surged in the US production levels, which made the US the world's largest oil producer, leading to some members demanding the US participation in cutting production to balance the market.

President Donald Trump stated that OPEC did not ask him to cut production, adding that US production is already dropping due to the falling prices.